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The Life Cycle of Agricultural Cooperatives: Implications for Management and Governance in Ethiopia

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  • Francesconi, Gian Nicola
  • Ruben, Ruerd

Abstract

Commercialization through cooperatives has the potential to reduce transaction costs and improve bargaining power of farmers vis-à-vis the market. The objective of this study is to evaluate the probability for Ethiopian agri-cooperative to engage in collective marketing activities over time, given market and governance characteristics. Using a sample of 200 agricultural cooperatives from the Ethiopian Highlands, the analysis reveals that collective marketing faces cyclical challenges related to increased competition. Empirical results also suggest that among Ethiopian cooperatives, those located in the Northern regions of Tigray and Amhara, and/or established upon the voluntary initiative of farmers, are more likely to engage in sustainable collective marketing activities over time. The study concludes with implications for policy and further research.

Suggested Citation

  • Francesconi, Gian Nicola & Ruben, Ruerd, 2008. "The Life Cycle of Agricultural Cooperatives: Implications for Management and Governance in Ethiopia," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 36(2), pages 1-16.
    • Handle: RePEc:ags:jlorco:163499
    DOI: 10.22004/ag.econ.163499
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    Cited by:

    1. Salifu, Adam & Francesconi, Gian Nicola & Kolavalli, Shashidhara, 2010. "A review of collective action in rural Ghana," IFPRI discussion papers 998, International Food Policy Research Institute (IFPRI).
    2. Jiri Hejkrlik & Petra Chaloupkova & Tetyana Sokolska, 2023. "The role of transformational leadership and leaders’ skills for new agricultural cooperatives in post‐soviet countries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(1), pages 109-129, March.
    3. Mellor, John W. & Dorosh, Paul A., 2010. "Agriculture and the economic transformation of Ethiopia," ESSP working papers 10, International Food Policy Research Institute (IFPRI).
    4. Nikulin, Alexander (Никулин, Александр) & Sobolev, Alexander (Соболев, Александр) & Trotsuk, Irina (Троцук, Ирина) & Kurakin, Alexander (Куракин, Александр), 2017. "Russian Agricultural Cooperatives: Regional Features, Economic Behavior, Management and Development Models [Российские Сельскохозяйственные Кооперативы: Региональные Особенности, Экономическое Пове," Working Papers 061714, Russian Presidential Academy of National Economy and Public Administration.
    5. Francesconi, Gian Nicola & Wouterse, Fleur, 2011. "The renewed case for farmers' cooperatives: Diagnostics and implications from Ghana," IFPRI discussion papers 1129, International Food Policy Research Institute (IFPRI).

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